APPLICATION OF THE LAST PLANNER SYSTEM IN THE INDIAN

BUILDING CONSTRUCTION INDUSTRY

By

Senjam Romero Singh

Abstract

             

India is fast moving forward with the recent pace of economic boom that it witnessed. Its economy has been rapidly developing with respect to the various sectors. With a rising GDP and a Government Policy directed towards the development of Infrastructure, the construction

Industry is also witnessing a boom. The construction industry contributes to about 7.80% of the GDP. However, due to the use of the age old traditional method of planning and project control most of the projects in India have been suffering from schedule and cost overrun of as much as 50% in certain sectors. In order to avoid a loss in GDP the construction Industry has to find ways and means to adopt project control systems that results in removal of unnecessary wastage. The Last Planner System (LPS) should be adopted in the Indian Construction

Industry for the removal of wastage and better achievements of the project goals considering its wide application all over the world.

As India has its own unique problems and characteristics the LPS has to be remodeled to better suit its need. In this research work attempts have been made to provide a LPS model that addresses the issue keeping the core ideas and concept in mind.

Case Study research with an experimental setting has been used to achieve the research

objectives. Experiment and data collection has been carried out on two projects being undertaken by a small and a large scale industry that represents the different scale of construction. An attempt has also been made to provide an implementation strategy that can be effectively used in application of the LPS concept in the country.

Executive summary

Rationale of research

This research has been conducted to develop a model for Indian construction industry to for productivity improvement through Last Planner System.

Objectives of study

To develop a simple working model of the Last Planner System to be adopted in Indian Construction Industry. To implement the LPS model and study its effect on the productivity and plan reliability and to improve the LPS model and suggest an implementation strategy

Methodology

The exploratory research method is used to study productivity management in Indian construction industry, through literature review ,expert verification and by studying two cases from Indian construction industry..

Findings and conclusion

The Last Planner System Model used in the two case studies was designed based on studies of the characteristics of the Indian Construction Industry and the feedbacks received from the Experts who were consulted to verify the model and the construct of the experiment. The refined Model was then used for the experiment. This satisfies our first objective.

The model which was put into experiment has produced some positive result. The model used was able to solve certain problems related to wastage of time spent waiting for resources on site during execution of the activities in the projects. The project participants were confident that if the Last Planner System was applied in the projects and considerable amount of time was spent in gathering experience in its use, it can solve most of the problems related to unreliable planning that does not consider the ground realities in the site and problems related to resource allocation thereby avoiding wastage of time in waiting. Removing these two problems will remove unnecessary overtime and extra commitment of resources. A smoother work flow will lead to increase in motivation and commitment in the project participants. The

Last Planner System is hence considered effective for application in the Indian Building Construction projects. This satisfies our Second objective.

All the feedback received from the experiment participants and the observation made during experiment has led to an improvement in the Last Planner Model and development of an implementation strategy.

Recommendations

·         Maintenance of written guidelines of the implementation of the Last Planner System by each company based on the company structure and policy and the lesson learnt gained from experience in using the LPS. Roles and responsibility of each individual should be clearly defined.

·         The Last planner should be a group headed by the site engineer who will closely coordinate work with the supervisors and the work crew leader.

·         Root cause analysis should be done at each PEP meeting to discuss the incompletion of assignments of the previous week.

·         Incentives schemes should be adopted to further motivate the Last Planner group to release reliable weekly plans.

INVITATION FOR SEMINAR           @

School of Engineering and Technology,

Asian Institute of Technology,Bangkok

BIM – Will it transform the industry,or will it be business as usual?

by

Dr. Henrik Linderoth

Associate Professor

School of Technology and Society

University of Skövde

Date: Friday, 6 July 2012

Time: 13.00 - 16.00 hrs.

Venue: Room E220, 2^nd Floor of South Academic Building

Abstract

The emergence of new technologies has always triggered visionary ideas of changes of the state of art in organizations, industries and society. However, what we know from research is that changes do emerge, but often not as fast as expected and not in the directions predicted in the visionary ideas. In this sense BIM – Building information models – is no exception. The transformative capacity of BIM and its potential benefits has been discussed for two decades, but it is only during the last few years a more encompassing deployment of BIM can be witnessed. However, challenges still exist for management before any deeper impacts on the industry will be achieved. The challenges to solve can be viewed as layers of challenges in at least four categories: technical, legal, organizational and managerial. During the seminar these challenges will be discussed and I will draw parallels with a similar process in the health care sectors that I have studied for ten years. It appears that at the bottom line is the issue: Who are the beneficiaries and who has the power to shape the process?

All interested persons are cordially invited. Doctoral and master’s students of Construction, Engineering and Infrastructure Management Field are expected to attend.  For further details, 

please contact Ms. Woranuch at 02-524-6060.

FEASIBILITY STUDY REPORT FOR URBAN

INFRASTRUCTURE PROJECT

USING LOAN FROM OFFICIAL DEVELOPMENT ASSISSTANCE (ODA).

A CASE STUDY OF LAOCAI CITY DEVELOPMENT PROJECT

FUNDED BY WORLD BANK

by

Nguyen Viet Cuong

Abstract

The development of socio-economic infrastructure plays a very important role in the country developing strategy, it is a major factor to help developing country reducing the poverty. The fund for the infrastructure development can be from many sources: private sector, counterpart, mixed credit and ODA loan…In order to meet the huge demand on infrastructure project development, the preparations of project investment such as project feasibility study is specially paid attention by Project Management Units.

Furthermore, with the project using the loan from international Donors, the feasibility study is not limited in project financial aspects like loss or profit, it also studies the other social aspect such as safeguard policies, economic benefits, benefit to the residents within project… The project feasibility study report therefore also be considered as approved factor for the Donor to give the loan.

The purpose of this study is to identify the process to prepare a feasibility study report for the urban infrastructure development project using the loan from World Bank. this process of preparing feasibility study report need to be followed the government instruction as well as complying with the World Bank regulation.   

Executive summary  

Rationale of research

This research has been conducted to indentify the course of action to prepare feasibility study report for the urban infrastructure development project using loan from World Bank.

Objectives of study

To prepare feasibility study report following guidelines of five funding agencies (Asian development Bank, French Agency, World Bank, Japan Bank for International Cooperation, German Bank for Reconstruction) to identify risk of unrealistic FS report preparation and to analyze problem during preparation of FS report.

Methodology

In this research methods are followed in accordance with the five funding agencies i-e step by step completion of FS report from collection of data to provincial people approval and World Bank non-objection letter.

Findings and conclusion

Apart from the project financial advantages, the significant advantage from project implementation is that the Project Owner and project shareholders particularly the Consultants are approached to the international standards in project preparation and implementation. Report helps in making decision of either invest or not to invest for construction.

The project shareholders, at any time during project implementation, must take note on the compliance of Donor’s guidelines, as World Bank specialists supervises strictly the project implementation to ensure the effectiveness of fund usage and development criteria are complied.

The project FS report has to be prepared in compliance with both Lender’s guideline and Governmental rule and regulation. This appears to be the biggest challenge for the Project Owner and FS Consultant, that why the selection of FS Consultant need to be always considered carefully with the Non-objection from the Donors.

The other issues such as the sustainable development and Community Awareness in sanitation and environment, institution and capacity building also need to be considered carefully and differently from the normal construction investment project

During the FS preparation stage, the difficulties will be occurred due the lack of experience in project management from project owner to this new concept of total project development, thus, the improvement of project communication and information sharing must be paid attention to avoid the unnecessary delay.

Recommendations

The FS report is more difficult and complicated when compared with commercial project report. The main procedure and guidelines are defined by donor agency and lenders criteria, so I can only give my recommendations to prepare reliable FS report using World Bank loan in particular.

·         Project management unit should be set up at early stage; matrix structure under control of provincial leader.

·         The more accurate data, the more reliable report will be so need of proper survey team and procedure.

·         As FS report preparation will be in direct supervision of World Bank so consultant need to have experience of working with WB and have experience in development of similar projects.

·          As FS preparation team is different from presentation team to World Bank expert, so there is need of proper communication system among stakeholders it can be done by telecom conference with minute notes. 

Seminar on Improving Construction Project Management Competitiveness
Project Management Competencies and Total Quality Management - Six Sigma Approach

By

Dr. Hadikusumo, AIT

Mr. Wiboon Tachapaisankul, Quality Specialist Consulting Director Massbiz Co., Ltd.

The seminar was conducted @ AITVN Can Tho, and Ho Chi Minh city, Vietnam on June 16 and 17, 2012 with over 110 participants.

During the seminar, Mr. Wiboon shared information about Six Sigma overview with its framework, basic QC and introduction of Six Sigma tools, and essential guideline with certain examples of Six Sigma being application in the construction industry was presented as well.

The second part of seminar was conducted by Dr. BHW Hadikusmo with the presentation  about roles of project management in large construction projects and competitiveness of construction companies.

Presentation from Dr. Hadikusumo

 Presentation from Mr. Wiboon

Seminar participants 

 

invitation

AIT SEMINAR

IMPROVING CONSTRUCTION PROJECT MANAGEMENT COMPETITIVENESS

PROJECT MANAGEMENT COMPETENCIES AND TOTAL QUALITY MANAGEMENT - SIX SIGMA APPROACH

The Asian Institute of Technology (AIT), as the Asia-Pacific Region’s first postgraduate engineering school, has striven to promote technological change and sustainable development through education, research and outreach. Over the years, AIT has produced a number of engineering and technology alumni for key organizations/sectors in Vietnam. Advanced education and research in engineering and technology continue to be among the Institute’s greatest strengths.

School of Engineering and Technology (SET) is one of the three schools at AIT. SET’s mission is to develop future leaders, highly qualified engineers and technologists who play leading roles in promoting the region’s industry competitiveness for its integration into global economy. Besides offering state-of-the-art multidisciplinary programs, SET annually conducts expert seminars to promote its cutting-edge applicable researches to interested experts/professionals.

We would like to inform you that Project Management in Construction program (MPM), SET is organizing a

seminar in “Improving construction project management competitiveness” with the topics to be discussed would be as follows:   

• Total quality management using six sigma approach for improving construction project performance
•  Roles of project management in large construction projects and competitiveness of construction company.

Date & time:    - In Can Tho: 9:00-12:00; Sat 16 June 2012

- In Ho Chi Minh: 9:00-12:00; Sun 17 June 2012

- In Ha Noi: 9:00-12:00; Sat 23 June 2012

Location:          - In Can Tho: Learning Resource Center, Can Tho University, Campus 2, 3/2 Ninh Kieu Dist., Can Tho City

- In Ho Chi Minh: 45 Dinh Tien Hoang Str., Ben Nghe ward, District 1, HCMC (Opposite to HTV broadcast station)

Language:        English with interpretation

We are pleased to invite you or representatives from your institution, company to this seminar.

You are kindly requested to confirm your attendance as follows:

─       In Can Tho: not later than 14 June 2012 to Mr. Le Tam Phuoc at (0710) 3815523; email: phuoclt@aitcv.ac.vn. Fax: 0710 381 7860.

─       In Ho Chi Minh: not later than 15 June 2012 to Ms. Nguyen Le Tuong at (08) 39107423 (ext:117); email: ngletuong@aitcv.ac.vn. Fax: (08) 39107422.

─       In Ha Noi: not later than 21 June 2012 to Ms. Duong Thi Ngan at (04) 37669493 (ext: 133), email: ngan@aitcv.ac.vn. Fax: (04) 37669492.

 We look forward to meeting you all at the seminar and thank you for your cooperation.

Best regards,

Seminar on Social Transition and Technological Development of Japan

Seminar on Social Transition and Technological Development of Japan 

By

Dr. Takayuki Minato

Graduate school of frontier sciences

University of Tokyo Japan

The seminar was conducted @ AITVN Can Tho, Vietnam on May 25, 2012. 

During the seminar, Dr. Minato shared information about Japan’s government measures and policies for environmental issues, and possible  future social change in technology driven society.

The second part of seminar was conducted by Dr. BHW Hadikusmo with the introduction about Professional Master program in Project Management specialized in Construction.

Presentation of Dr. Takayuki Minato

Presentation of Dr. BHW Hadikusumo, CEIM and MPM Coordinator

 

Seminar participants

CONTRACTOR’S PRACTICE FOR MANAGING SUBCONTRACTOR: A CASE STUDY OF THE EVER RICH II PROJECT IN HO CHI MINH CITY

By

 Vo Khac Kien

Abstract

             

In the recent years, in most construction projects, particularly building projects prefer to hire subcontractors. Consequently main contractor need to develop management system standard in order to manage subcontractor rather than they will undertake construction work by themselves. As a result, main contractor concentrate on management strategies in term of tender process, type of contract, schedule control, quality control, progress and payment, and subcontractor safety.

In order to understand how main contractor’s strategies manage their subcontractors, this report was conducted through contractor documentation. The result shows subcontractor control strategy in a local contractor. Major improvements are needed for the subcontractor control strategy in local contractor in order to improve the subcontractor management performance. However, there are some major points, which need to be improved in order to strengthen and continually improve the strategy performance.

Executive summary

Rationale of research

This research has been conducted to identify Main Contractor’s strategy for managing  sub-contractors within a project.

Objectives of study

To study management practices of contractors in contractor’s for managing subcontractor in The Ever Rich II Project, Dao Tri Street, District 7, HCMC. Find out strengths & weakness to propose recommendations.

Methodology  

The exploratory research method is used to study management practices in Vietnam.

Findings and conclusion

In recent years, main contractor have been trending to use subcontractor in specific area accordingly like as specialist subcontractor, skilled-labor subcontractor and expertise provided by subcontractor. Especially building project, it is common for 80 percent to 90 percent of the work to be performed by subcontractors.

However, there are many subcontractors who do not have not enough expertise or skilled resources to undertake work satisfactorily and, as a result, they are not able to bring good services to clients or not reach their requirements. In order to resolve these problems that main contractor needs to develop a strategy that allows contractor to manage subcontractor effectively and efficiently.

According to the rationale stated above, this study to conduct an investigation of main contractor’s strategy for managing the subcontractor on construction project in terms of tender, unit price contract, schedule control, quality control, progress and payment, and safety.

Criteria Contractor’s Strategy

Tender           

o   Experience is the most important factor for subcontractor tendering.

o   Capability including financial, resource and material.

o   Have a tender process and focus on long-term relationship subcontractor.

o   Time, quality of performance, and price competitive are the project success measurement.

o   Safety performance plays important role in this project.

Contract        

o   Apply unit price contract in order to save heavy cost of preparing many bills of quantity by the subcontractor.

o   Fair basis for competition between subcontractors

o   Changes in contract documents can be made easily by the contractor compare to lump sum contract.

o   Lower risk for subcontractor compare to lump sum contract.

Scheduling

o   CPM and Microsoft Project was adopted as a toll for monitoring subcontractor’s schedule

o   Using fast track schedule in order to save the time.

o   Weekly meeting and monthly meeting in order to discuss the progress of subcontractor’s work performance.

o   Penalty for subcontractor delay works.

o   No bonus or incentive for subcontractor early finish work.

Quality           

o   Developing quality checklist to inspect subcontractor’s performance of each work.

o   Materials enter in and out site would be inspect and check using material record form.

o   Weekly meeting

o   Need worker qualification standard for special works

o   Requesting subcontractor correct unacceptable works by a warming letter.

o   Progress and Payment 

o   Because of use unit price contract so monthly progress payment based on actual quantity that subcontractor done.

o   Monthly progress payment would be keep 5 percent retention that be paid on final progress payment.

Safety 

o   Apply Environment, Health and Safety requirements.

o   Standard safety policy.

o   Providing PPE is a obligatory condition during work at site.

o   Conducting Job safety analysis.

o   Daily site safety inspection by safety engineer

o   Weekly meeting would discuss safety issue and analysis site safety inspection report.

o   Arrange safety budget for safety program implementation.

Recommendations

·    Need to develop standard for tendering for specialized sub-contractor.

·    Main contractor should arrange international formally contract in order to manage subcontractor in terms of legal procedure.

·    Main contractor should use IT to monitor progress.

·    Main contractor should develop quality management process to control all of subcontractor performance.

·    Main contractor should record subcontractor database to be able to know subcontractor information. It helps main contractor to have better understanding subcontractor’s performance.

·    Main contractor should develop safety management system in order to analysis hazard and minimize risk in subcontractor performance. Subcontractors have to obey contractor’s safety policy and follow contractor’s safety program.

·    Main contractor should develop long-term relationship with subcontractors.